Carson Block’s Muddy Waters Research announced a short position in dLocal (DLO), saying the company is “likely a fraud.” The payments company based in Uruguay has “repeated disclosures about its TPV and accounts receivable that flatly contradict one another,” Muddy said in a report posted on its website. “There is also a contradictory discrepancy between two key subsidiaries’ accounts payable and accounts receivable,” it added. The short selling firm sees “signs of cooked books” and has concerns about dLocal’s controls for client funds. Shares of dLocal are down 15% to $18.02 following the report.
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